What is ROI?
ROI, or return on investment, is a financial calculation that measures the success of an investment relative to its costs. The ROI formula is simple: (Gain of Investment) - (Cost of Investment) / (Cost of Investment). The result is expressed as a percentage, with a positive percentage being good and negative bad.
ROI is often calculated when making decisions about call center investments, such as software purchases, on-premises vs hosted solutions comparisons, and outsourcing analyses. Applying the simple ROI formula to these scenarios can be a complex undertaking because it requires a detailed understanding of current and future costs as well as an ability to forecast future tangible benefits. For example, the Gain of Investment portion of the formula is a combination of additional revenue that will be realized from the investment and all costs that will be eliminated.
Organizations that conduct an ROI analysis may want to do both a best- and worst-case scenario, with the understanding that the actual results will fall somewhere in between. Additionally, an ROI analysis may not be enough to make a decision. Organizations may want to supplement it with a payback period analysis as well as calculate the internal rate of return (IRR).
Doing a thorough ROI analysis may be a significant undertaking but organizations that invest the time and effort will be in a position to make sound, fact-based decisions. And, with best practice, can evaluate the effectiveness of the analysis and take into consideration key factors for the next investment decision.
How NICE inContact can help
Thinking about moving your contact center to the cloud? We can help you calculate the ROI.
NICE inContact CXone is the market leading contact center software in use by thousands of customers of all sizes around the world. CXone is a cloud native, unified suite of applications designed to help a company holistically run its contact (or call) center operations. CXone includes:
Omnichannel Routing – routing and interaction management. These solutions include an automatic call distributor (ACD), interactive voice response (IVR), interaction channel support and proactive outbound dialer.
Open Cloud Foundation – enables rapid innovation with an extensible enterprise-grade platform that scales securely, deploys quickly and serves customers of all sizes globally. We guarantee an industry-best 99.99% availability and offer easy customization through RESTful APIs and DEVone developer program.
CXone also includes pre-defined CRM integrations and UCaaS integrations with most leading solutions on the market. These integrations provide a holistic contact center software solution capable of elevating customer experiences for companies of all sizes.